1. Field of the Invention
This patent relates to a method of teaching minors and other young persons about the stock market via the Internet. More specifically, this patent relates to a method for enabling minors to make stock market or other investment transactions by demonstrating sufficient investment knowledge and obtaining the authorization of an adult.
2. Description of the Related Art
Games that teach young persons about money in general and the stock market in particular are known. For example, Bukowsky U.S. Pat. No. 5,934,674 discloses a simple stock market game played using a game board, an electronic display, stock tokens, and action cards. Players move around the board buying and selling stock, represented by the tokens, and playing action cards representing different market conditions. The “stocks” are revaluated from time to time depending on which action cards are played.
O'Connor et al. U.S. Pat. No. 6,032,141 discloses a rule-based tutorial system that utilizes business simulations of actual environments to teach new skills tailored to a student's personality. The system is illustrated using a model for purchasing real estate analyzing an own-versus-rent decision. A stock market model is also mentioned.
While these inventions may have some educational and/or entertainment value, they are mere simulations. Neither can be used to enable young persons to make real financial transactions with the approval and authorization of an adult.
There are also Internet sites that purport to teach persons of all ages about finances and the stock market. For instance, MainXchange (www.aaesa.org/Marketplace/mainXchange.htm) describes itself as a “Free Interactive Internet Stock Market Teaching Tool” generally aimed at middle and high school through college students and adults, although some advanced upper elementary students may also find it educational. Like the present invention, MainXchange allows a user to research companies before investing and then invest in publicly traded stocks. However, unlike the present invention, MainXchange is merely a simulation. MainXchange does not allow an adult to set up a real money custodial account for a minor, nor does it allow a minor to place stock purchases on a “wish list” where an adult can “grant the wish” by fulfilling the stock transaction. MainXchange does ask “trivia questions”, presumably about the stock market, but it does not vet the user's knowledge of the stock market or a particular stock pick before allowing them to place a stock transaction on their “wish list”.
The EduStock Internet site (http://library.thinkquest.org/3088/welcome/welcome.html) also is designed to teach persons “young and old” about the stock market, and includes a stock market simulator where a user can create and maintain a virtual stock portfolio and watch the progress of the stocks over time. The simulator tracks the performance of actual stocks and changes the value of the user's virtual portfolio accordingly. Although the user can research company profiles before “buying” a stock, the simulator does not ask the person questions in order to vet their knowledge of the company or the stock market before allowing them to invest. Since it is merely a simulation, the simulator does not allow an adult to place real money in a savings account from which a minor can draw funds to invest. Instead, like the MainXchange simulator, each user gets a nominal sum of virtual money to start the simulation.
None of the prior art references teaches a method for enabling adults to perform stock market transactions on behalf of minors or young persons who have demonstrated sufficient knowledge of the stock market.
Thus it is an object of the present invention to provide a system and method for teaching minors and other young persons about finances, including the stock market.
Another object is to enable minors and other young persons to make stock market transactions via the internet with the approval and authorization of an adult.
A still further object of the present invention is to provide a method for evaluating the young person's knowledge of a target stock before enabling the teen to make a stock transaction request.
Yet another object of the present invention is to provide a method for an adult to grant the stock transaction request using either money from the young person's custodial account or the adult's own money.
Further and additional objects will appear from the description, accompanying drawings, and appended claims.